Dar Es Salaam, Tanzania (PRWEB) June 25, 2010
Kastan Mining Limited announced today that the Company’s mining license applications have been approved by the Honorable William Ngeleja, Minister, Ministry of Energy and Minerals, covering approximately 70 square kilometers in the Kilosa District of Tanzania, an area rich in copper as well as gold, silver and other minerals. Pre-feasibility and feasibility studies have indicated significant commercial hard rock deposits of copper, gold and silver. The Company’s geological team is conducting a stream sediment study to assess the gold recovery potential of a 3.8 million metric ton alluvial deposit. Additional feasibility studies and exploration efforts are planned to further establish and increase mineral reserve estimates as well as the life of the mining operation. Kastan expects to begin mining and processing in late 2010 after Kastan Construction, the Company’s construction subsidiary, improves a 20 kilometer section of road to the initial mining site.
Kastan's Chairman, Yun Ho Cho, commented: "The mining license for Kilosa is an important milestone for our business plan and the key driver of our revenue and earnings growth in the coming years."
Kastan's CEO, John Tate, commented: "The Kilosa license approval represents the culmination of an extensive and thorough review conducted by the Ministry of Energy and Minerals. We appreciate the thoroughness and professionalism displayed by the Ministry throughout the process as Ministry personnel carefully reviewed every aspect of our application to confirm all required compliance. Their focus on positive long term outcomes for all stakeholders in the project bodes well for the fair and balanced future development of mineral resources in Tanzania.”
Kastan's Executive Vice President-Corporate Strategy, George Gaines commented: "We may elect to finance the Kilosa project from existing reserves as well as cash flow from our other mining operations. We also are in active discussions with potential financial and strategic partners to accelerate the pace and increase the scope of the mining plan.”
About Kastan Mining (http://www.kastanmining.com)
Headquartered in Dar es Salaam, Tanzania, Kastan Mining is a mining and exploration company focused on mining opportunities in Tanzania. Kastan has several initiatives underway at various stages of development ranging from initial production to early exploration.
This press release contains statements which constitute forward-looking statements within the meaning of the US securities laws. Such statements include, but are not limited to, statements with regard to capacity, future production and grades, projections for sales growth, estimated revenues and reserves, targets for cost savings, the construction cost of new projects, projected capital expenditures, the timing of new projects, future cash flow and debt levels, the outlook for minerals and metals prices, the outlook for economic recovery and trends in the trading environment and may be (but are not necessarily) identified by the use of phrases such as “will”, “expect”, “anticipate”, “believe” and “envisage”. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and may be outside Kastan’s control. Actual results and developments may differ materially from those expressed or implied in such statements because of a number of factors, including levels of demand and market prices, the ability to produce and transport products profitably, the impact of foreign currency exchange rates on market prices and operating costs, operational problems, political uncertainty and economic conditions in relevant areas of the world, the actions of competitors, activities by governmental authorities such as changes in taxation or regulation and other factors over which Kastan has limited control.